London police launch fraud probe into LHSC’s ‘past financial practices’

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London police are investigating “past financial practices” at London Health Sciences Centre, the latest blow for a hospital wrestling with a $150-million deficit and reeling from months of turmoil in its management ranks.

“We are letting our community know that in response to concerns raised by London Health Sciences Centre, London Police Service has launched an investigation into past financial practices at LHSC,” the hospital said Wednesday in statement posted on X. 

“We are fully co-operating with the police during their investigation. As the investigation is ongoing, we will not be making any further comments.”

David Musyj, LHSC’s provincially appointed supervisor, shared the hospital’s statement with staff before it was posted on social media.

“I understand that this is a little vague and you likely have questions, but as this is an ongoing investigation, I will not be sharing further information until it’s appropriate to do so,” he said.

“I also want to remind you that this is not a reflection of you – those of you doing the work on the frontline providing exceptional care – and it does not impact the work we are doing every day, in any way.”

London police confirmed its fraud investigation at LHSC.

“We are unable to share anything further at this time. Additional information will be shared via a future media release, if appropriate,” police said in post on X.

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The hospital’s bombshell announcement is the latest headline-grabbing news from one of London’s largest employers as it wrestles with a $150-million deficit while being run by a supervisor appointed by the province.

Musyj, who was seconded from Windsor Regional Hospital and named interim LHSC president in May, was appointed by the province as supervisor at LHSC on Sept. 25. 

He will report directly to the provincial government and “address concerns regarding hospital governance and operations, and management practices, including concerning financial performance, that were found as a result of a third-party review,” Ontario Health Minister Sylvia Jones said when his appointment was announced.

LHSC announced on Sept. 25 that its board members had voluntarily stepped down from their posts “in acknowledgment of the need for a fresh path for LHSC under new leadership.”

Under Musyj’s leadership, LHSC terminated 59 managers and demoted 71 others with pay cuts in September as part of its strategy to fix a $150-million deficit in its 2024-25 fiscal year. At the time, Musyj said further job cuts were possible.

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Musyj replaced Jackie Schleifer Taylor, who had been chief executive since 2021. Schleifer Taylor went on a medical leave of absence in November 2023, and the hospital announced June 11 she was no longer employed at LHSC.

Under Schleifer Taylor’s tenure at the helm of LHSC, which came after the abrupt termination of Paul Woods over pandemic travel, the hospital moved to sever ties with St. Joseph’s Health Care London and wind down various joint ventures. LHSC also aggressively restructured its top ranks under Schleifer Taylor’s leadership, adding additional roles and terminating longtime executives.

LHSC’s major deficit comes as spending by hospital brass on travel and salaries attracted significant public backlash. Last fall, The London Free Press reported that LHSC sent 16 senior staff and executives to an international hospital conference in Portugal and six executives to the United Arab Emirates. A third scheduled trip to Australia by 11 senior staff was cancelled at the last minute. The cost of the travel was $470,000.

In 2023, Schleifer Taylor was the fourth-highest paid hospital executive in Ontario, and the only one outside Toronto pulling in salary and benefits of more than $800,000.

One of Canada’s largest acute-care teaching hospitals, LHSC operates three hospitals and has more than 15,000 staff.

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